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Competition Commission charges Unilever South Africa for cartel conduct

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Staff Writer | March 7, 2017
Hudson Knight
Africa   Sime Darby divided markets

The Competition Commission has referred to the Competition Tribunal for prosecution a cartel case against Unilever South Africa and Sime Darby Hudson Knight.

This follows the investigation by the Commission which found that Unilever and Sime Darby divided markets by allocating specific types of products and customers goods in the market for the manufacturing and supply of bakery and cooking products throughout South Africa.

This conduct contravene the Competition Act. The Commission’s investigation found that from at least 2004 to 2013 Unilever and Sime Darby entered into a sale of business agreement, which contained a clause in terms of which they agreed not to compete with each other in respect of certain pack sizes of margarine and edible oils.

Sime Darby settled with the Commission in 2016. The Commission is seeking an order from the Competition Tribunal declaring that Unilever and Sime Darby contravened the Competition Act as well as an order declaring Unilever liable for payment of an administrative penalty equal to 10% of its annual turnover.


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